Elon Musk says his time working for Donald Trump’s administration will ‘drop significantly’ next month – as Tesla profits sink
Elon Musk has said the time he spends with Donald Trump’s Department of Government Efficiency (DOGE) will “drop significantly” from May and he will allocate more time to Tesla.
It comes after first-quarter profits at Tesla sank as the company grapples with falling sales, partly due to President Trump’s tariffs.
As a special government employee, Mr Musk was limited to 130 days in his role at DOGE, which is primarily aimed at slashing federal spending.
But the cuts, which included axing government jobs, have divided the country and prompted a backlash against his company, including protests and attacks on Tesla showrooms, prompting Donald Trump to label the vandals “terrorists”.
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‘Elon Musk has got to go’
Tesla said on Tuesday that quarterly profits fell by 71% to $409m (£306.77m) from $1.39bn (£1.04bn) in the first quarter of 2024. Revenues were also well below forecasts, dropping 9% to $19.3bn (£14.5bn) between January and March.
The company’s value has plummeted since reaching a record high in mid-December. Since then, Tesla’s share price has fallen more than 50%.
Tesla’s share price has tumbled following the financial market turbulence caused by the global trade war tariffs, competition from Chinese EV rivals and concern over Mr Musk’s ability to give the firm the attention it requires.
Mr Musk’s role as chief executive of the company was among the most common questions shareholders were asking about in a question-and-answer portal ahead of an investor call on Tuesday evening.
As well as his role at the top of Tesla, he is also the CEO of space exploration company SpaceX and owns social media company X, formerly known as Twitter.
Donald Trump hired Elon Musk to help cut federal spending, but Tesla has faced a public backlash. Pic: AP
Musk has ‘lost focus’
An early Tesla investor Ross Gerber said in a recent interview with Sky’s Business Live that Mr Musk had lost his focus and was now too “divisive”.
There has been no clear sign of improvement at Tesla as much-awaited updates on making affordable cars and developing driverless technology left some questions unanswered.
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‘I think Tesla needs a new CEO’
Work on an affordable car remained “on track for start of production in the first half of 2025”, Tesla’s financial results said, but no details on a prototype were given.
Production of Tesla’s self-driving robotaxi, named Cybercab, is scheduled to start in 2026.
Tariffs harming outlook
Uncertainty was also evident in the outlook statement, which pointed to the harm tariffs could pose to the business.
“It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,”
“The rate of growth this year will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment”.
While Teslas are made in the US, there are also factories in China and Germany. Under the tariff regime, those car parts are subject to additional taxes when they enter America.
The United States and European Union have agreed a trade deal, says Donald Trump.
The announcement was made as the US president met European Commission chief Ursula von der Leyen at one of his golf resorts in Scotland.
Speaking after talks in Turnberry, Mr Trump said the EU deal was the “biggest deal ever made” and it will be “great for cars”.
The US will impose 15% tariffs on EU goods into America, after Mr Trump had threatened a 30% levy.
He said there will be an EU investment of $600bn in the US, the bloc will buy $750bn in US energy and will also purchase US military equipment.
Mr Trump had earlier said the main sticking point was “fairness”, citing barriers to US exports of cars and agriculture.
He went into the talks demanding fairer trade with the 27-member EU and threatening steep tariffs to achieve that, while insisting the US will not go below 15% import taxes.
For months, Mr Trump has threatened most of the world with large tariffs in the hope of shrinking major US trade deficits with many key trading partners, including the EU.
Ms von der Leyen said the agreement would include 15% tariffs across the board, saying it would help rebalance trade between the two large trading partners.
In case there was no deal and the US had imposed 30% tariffs from 1 August, the EU has prepared counter-tariffs on €93bn (£81bn) of US goods.
Ahead of their meeting on Sunday, Ms von der Leyen described Mr Trump as a “tough negotiator and dealmaker”.
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At least 11 people have been stabbed at a Walmart supermarket in Michigan, with six in a critical condition.
Officials say a suspect is in custody – and at this stage, it is believed the attack was a “random act” that involved a folding-style knife near the checkout area.
Sheriff Michael Shea told reporters: “Eleven is 11 too many, but thank God it wasn’t more.”
Pic: AP
The suspect, who is from Michigan, is not known to police – and was captured within three minutes thanks to “citizen involvement”.
The attack unfolded in Traverse City – and Tiffany DeFell, who was in the car park at the time, described scenes of chaos.
“It was really scary. Me and my sister were just freaking out,” she said. “This is something you see out of the movies.”
Beyond the six people in a critical condition, it is believed the remaining five were seriously hurt. All 11 are still being treated in hospital.
Pic: AP
Michigan Governor Gretchen Whitmer said: “Our thoughts are with the victims and the community reeling from this brutal act of violence.”
A Walmart spokesperson added that the retailer is working closely with law enforcement.
“Violence like this is unacceptable. Our thoughts are with those who were injured and we’re thankful for the swift action of first responders,” a statement said.
Pic: AP
At this stage, the ages of the victims is unclear – but it is not thought any of the victims were Walmart employees.
Traverse City is about 255 miles northwest of Detroit.
A US passenger plane made a dramatic plunge minutes after take-off to dodge another aircraft – injuring two cabin crew and causing passengers to shoot out of their seats.
The Southwest flight had just taken off from Burbank in California when the pilot received an alert about a nearby plane.
Data from FlightAware shows the aircraft dropped by 91m (300ft) in just 36 seconds. Those on board said they felt panicked, and some feared the plane was about to crash.
Comedian Jimmy Dore posted on X: “Pilot had to dive aggressively to avoid mid-air collision … myself and plenty of people flew out of their seats and bumped heads on ceiling, a flight attendant needed medical attention.”
Stef Zambrano saw a woman who wasn’t wearing her seatbelt thrown out of her seat, who then said: “I want to get off this plane. I want to be on the ground.”
Another passenger, Steve Ulasewicz, told NBC Los Angeles that it felt like the plane was in freefall for 10 seconds.
“People were screaming. You know, it was pandemonium. People thought the plane was going down,” he added.
The aircraft was able to continue to its destination of Las Vegas, where it safely landed without any further incident.
It is believed the Boeing 737 was in the same vicinity as a Hawker Hunter Mk. 58, a British fighter jet.
Southwest is now working with the Federal Aviation Administration “to further understand the circumstances” of the event.
Read more US news:
Trump issues warning as he arrives in Scotland
US justice department interviews Ghislaine Maxwell
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January: Footage of Washington plane crash
This is the second time in a week that a passenger plane has had to make abrupt flight manoeuvres to avoid a potential mid-air collision.
Concerns have been raised about aviation safety in the US following a series of recent incidents.
In January, a mid-air collision in Washington DC killed 67 people.
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